Medical separation pay confusion

Jimmy73

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I hope someone can help me better understand of this works. I just started to recieve payments and I want to make sure they are correct
I’m an 03E with 24 years service total 3108 retirement points this is how they are paying me

They are paying me my base pay ($6083.40) times 2 times with 9 (3105 ret points)

Shouldn’t it be last of my current at 24 years service (7194.60)
Active duty base pay X 2)X (Retirement Points(3105) ÷ 360=9


They told me this is what they are going off of:
O3 base pay with 9 years\
$6083.40
$109,501.2

I hope this make sense. Thanks, Jim
 

RonG

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Ref: https://comptroller.defense.gov/Portals/45/documents/fmr/current/07a/07a_35.pdf#page8

350503. Computation
A. Formula. To compute disability severance pay, multiply the sum of basic pay for 2 months by the number of combined years (but not over 19) of active service and inactive duty points. Do not include as basic pay the 25-percent increase prescribed under certain conditions for a Navy or Marine Corps member retained on active duty after enlistment expires.

C. Grade at Which Disability Severance Pay is Computed. Compute severance pay on basic pay of the following highest grade or rank described:
1. The grade or rank in which the member is serving at separation;
2. The permanent Reserve grade held at separation;
3. The highest temporary or permanent grade or rank in which member served satisfactorily as determined by the Secretary of the Military Department concerned; or
4. For those selected for promotion, if the disability is found during a physical examination, then the grade or rank to which the member would have been promoted if there was no disability.

Good luck,
Ron
 
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Jimmy73

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Thank you very much for responding. What they are telling me as that I am to be paid as an 03E with 9 years of service. My les shows 24 years and rpas 3105 points. In know the 24 is not all good years but I think they are using an incorrect base pay. Also, they are paying in increments over 12-13 months. Does all this sound right? Sorry, a little slow. 3 brain tumor operations the past 2 years can do that:)
 

RonG

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The years service for which you are paid are active duty years or equivalent. Twenty four years are not the “equivalent” per the info you provided. However, your base pay figure in the formula should be the years for pay purposes amount in my opinion (ex. E9/22 yrs).

I never computed a severance pay while on AD and that ended 28 years ago, but my interpretation of the financial regulation cited above is that final base pay amount should be used (i.e., not high three for severance pay).

Ron
 

RonG

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More from same reference:
B. Years of Service. The member’s separation orders will specify the total combined years of active service and inactive duty points to be counted in computing severance pay. Round this total to the nearest whole year, with 6 months or more rounded up. The maximum number of years of service for computing the disability severance pay will be 19 years... [end]
——

3105 points divided by 360 = 8.625 (rounded to 9 years)

computation
A. Formula. To compute disability severance pay, multiply the sum of basic pay for 2 months by the number of combined years (but not over 19) of active service and inactive duty points. [Nine years is the multiplier in your case.]

Ron
 

RonG

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DFAS, SEVERANCE PAY

Disability Severance Pay
All branches of service have the authority to separate a soldier on the Temporary Disability Retirement List (TDRL). Separation may occur with entitlement to disability severance pay or without.

You must meet all of the following requirements to be eligible:
  • be found unfit for duty,
  • have less than 20 years of service,
  • and have a disability rating of less than 30%.
Prior to January 28, 2008 members were required to have at least 6 months of service to qualify for discharge with severance pay. This rule no longer applies.

If you were discharged with severance pay, you cannot go back on active duty or choose to apply for retirement later. However, you may be eligible to apply for monthly disability compensation from the Department of Veterans Affairs (VA) if the VA determines your disability is service-connected.
Calculation and Payment
Disability severance pay is a one-time lump sum payment. The amount equals 2 months of basic pay for each year of service which includes active service and inactive duty points, but the total service years cannot exceed 19 years. Additionally, the minimum number of years required for computation purposes is six years for a disability incurred in the line of duty in a combat zone, or 3 years in the case of any other member. Prior to January 28, 2008, a maximum of 12 years and minimum of three years creditable service was used.

https://www.dfas.mil/retiredmilitary/plan/separation-payments/disability-severance-pay.html

—-

Note the comment regarding retired pay. Do you have 20 good years to qualify for a reserve retirement?

Ron
 

Jimmy73

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Thank you very much for the information. So if I’m reading this right, my 24 years on my les and at that base pay, is what they should be using along with my total 9 active years in the calculation?
 

RonG

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That is my interpretation.

When you consider the following section of the financial regulation, which includes a rank not served in, it seems the final pay is the rate used:

C. Grade at Which Disability Severance Pay is Computed. Compute severance pay on basic pay of the following highest grade or rank described:
1. The grade or rank in which the member is serving at separation;
2. The permanent Reserve grade held at separation;
3. The highest temporary or permanent grade or rank in which member served satisfactorily as determined by the Secretary of the Military Department concerned; or
4. For those selected for promotion, if the disability is found during a physical examination, then the grade or rank to which the member would have been promoted if there was no disability.

Also, C.1 does not mention high three; it states the grade or rank in which the member is serving at separation. As a reservist, item C2 is pertinent.

Note: I assume you do not have 20 good years; therefore, you do not qualify for reserve retirement.

Ron
 

Jimmy73

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Right, I was medically discharged at 18 “good’ years. The problem is they are using my pay grade at 9 years and not my actual current les of 24 years collectively.
 

RonG

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Right, I was medically discharged at 18 “good’ years. The problem is they are using my pay grade at 9 years and not my actual current les of 24 years collectively.
1. The rate of pay for the member's pay grade and years of service taken from the pay table in effect on the date that one is separated is one factor (an example would be an E8 with 16 years service for pay purposes= rate)

2. The rate (base pay amount) is multiplied by 2 = sum

3. The “sum” at item 2 is then multiplied by the active duty equivalent, which in your case is 9 = Amount of Severance Pay

Ron

Note: As you know, the O3E requires “COMMISSIONED OFFICERS WITH OVER 4 YEARS ACTIVE DUTY SERVICE OR MORE THAN 1,460 RESERVE POINTS AS AN ENLISTED MEMBER OR WARRANT OFFICER.” You might consider contacting DFAS again and mention the reference at post 2 of this thread.
 
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